NEWTOWN, PA — Traws Pharma, Inc. (NASDAQ: TRAW) has finalized agreements to raise up to $72.6 million to support the development of its promising bird flu treatment, Tivoxavir Marboxil. The funding includes an initial $20 million tranche upon closing, with an additional $52.6 million contingent on warrant exercises tied to upcoming clinical data.
The initial funds will be raised through the sale of approximately 3.9 million shares of common stock and pre-paid warrants. The remaining funds are linked to non-prepaid warrant exercises if completed within 30 days of receiving results from pivotal studies, expected to be available in early and mid-2025. The financing is slated to close by December 31, 2024, pending customary conditions.
The deal has attracted the backing of notable institutional investors, including Perceptive Advisors, OrbiMed, Alyeska, Torrey Pines, and Ikarian Capital. Iain D. Dukes, Executive Chairman of Traws Pharma, stated, “This financing by high-quality investors is transformative for Traws and highlights the meaningful potential for Tivoxavir Marboxil.”
Traws’ focus on combating bird flu comes amid concerns shared by Chief Medical Officer Dr. Robert R. Redfield, formerly of the CDC. He warned of an increased risk of epidemic or pandemic spread due to rising human infections. Tivoxavir Marboxil has shown strong efficacy against bird flu and drug-resistant influenza strains in both lab and animal studies, according to Chief Science Officer Dr. C. David Pauza.
An update on Tivoxavir Marboxil is expected in early 2025, with a conference call planned to share additional details. Tungsten Advisors served as the sole placement agent for this financing effort.
This funding positions Traws Pharma to advance critical research on a potentially life-saving treatment as global attention on bird flu threats intensifies.
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